Knockdown, Rebuild or Renovate? How to Make the Right Decision

Emma Holmes Blueprint Collective
Architect Emma Holmes shares how to weigh budget, site, and lifestyle goals when deciding between a knockdown rebuild or renovation.

Two solid paths. One big choice. Choosing between knocking down your existing home, or renovating means balancing lifestyle goals with the reality of a budget.

We spoke with Emma Holmes, a Registered Architect, Director of Formery Architecture + Interiors, and member of the Blueprint Collective, about how she leads that process with her clients.

She walks through what to consider, how to weigh the options, and how to make the right call for your property, recognising that every client, home, and site comes with its own unique opportunities and constraints.

How often do clients arrive unsure of which way to go?

EH: It’s usually 50/50. A full knockdown rebuild is always the more tempting option, until budget, heritage, and site constraints are considered. This is why a home with good bones and opportunity to refit can make a renovation the smarter choice

If the structure is sound and the layout already works, a careful refresh or modest extension can deliver great value for return on investment. Other times, a quick walk-through with myself, client, and a trusted builder may reveal that the numbers stack up better for a rebuild, allowing the client to get a fully custom outcome instead.

Do you always visit the property first?

EH: Yes, always. Orientation, neighbors, and even trees can influence what is possible. I like to sit down with potential clients at their dining table and sketch a few options that compare a renovation vs a knockdown rebuild.

his simple test fit allows me to send it off to a builder for a ballpark figure for the works. That sketch becomes the springboard for a concept design where we develop the preferred option. Meeting face to face really helps to build trust from day one.

What factors do you weigh to guide the decision?

EH: There are four key questions I like to think about or ask:

  1. Does the existing home have structure or charm and character worth keeping?
  2. What is the client’s budget, and do they want to stage the work over time?
  3. Are there planning overlays or restrictions that may affect what is possible?
  4. Is it a great location AND house, or is the location great but the house is dilapidated or not a good fit?

When does a renovation become more limiting than a rebuild?

EH: When the house keeps getting in the way. If the existing rooms are too small, repairs pile up e.g. underpinning, or cracks and structural damage, or the plan cannot deliver the flow you need, a custom rebuild can meet lifestyle and performance goals more directly.

If the budget will not stretch, a renovation is still a valid option to consider. If it is feasible both financially and timeframe wise, a rebuild can be the more efficient route to get an outcome that is “exactly right.”

How do you help clients understand each option?

EH: We move from sketches into Revit quite quickly to allow us to explore the 3D form using Enscape for an early white-card model. You can walk through, see the form and massing, explore light and shadow, and even flip materials like brick versus timber for the facade. This helps people to feel the scale of each room, and make informed decisions on where to upsize, downsize, or save before we move into detailed documentation.

What do clients often underestimate in renovations?

EH: The unknowns. We cannot see some things until work begins, which can lead to variations along the way if an issue is uncovered that involves a design change. Whilst thorough documentation with early input from key consultants such as the structural engineer and builder can reduce risk, surprises can happen.

Why bring in an architect for bespoke work?

EH: Detail. Architects are trained to produce detailed documentation that integrates all elements of a building from facade and floors to walls, ceilings and beyond. This can reduce ambiguity and costly changes during a build. Renovations often attract higher design fees because we need to document the existing building as well as the new work. However, that detail pays for itself when it prevents rework later down the line.

What should clients do first when weighing up a renovation vs rebuild?

EH: Get a sketch feasibility study with cost guidance as early as possible to avoid late-stage heartbreak if costs escalate. By building the right team early, you can understand permits and timelines, and plan where you will live during works. If you renovate and move out, or if you knock down and rebuild, relocation needs to be part of that plan.

Final Thoughts

Whether you choose to renovate or rebuild comes down to the preferences of each individual. The right answer lies in how clients want to live, what the site will allows and what the budget can support. When the bones are good and the layout mostly works, or heritage settings apply, a renovation often delivers strong value.
When the existing house limits performance and flow, or repairs stack up across multiple areas, rebuilding can be the smarter investment.

Keep what works. Start fresh when it does not. Aim for a home that feels right for you.

About Formery Architecture + Interiors

Formery is a Melbourne-based architecture and interior design studio focused on creating intentional, high-quality residential design across a range of projects. From renovations and custom homes to multi-residential developments, Formery helps clients navigate the complexity of building with clarity and confidence. The studio combines thoughtful design with modern systems to make the process as seamless and collaborative as possible.

About Emma Holmes

Emma Holmes is the Director of Formery and Principal Architect on the team. With experience across tier one studios, boutique firms, and in-house development teams, Emma brings a holistic understanding of the entire project journey. She is passionate about simplifying the process for clients and believes that great design starts with empathy, honesty, and strong communication.

The Blueprint Collective: A Community for A&E Innovators

Emma and this article are part of the Blueprint Collective, a free, members-only content program that highlights top architecture and engineering firms. We do all the work, you get all the credit.

Each month, we interview you for 30 minutes, then write, design, and promote custom content about your firm. You’ll get beautifully branded materials, backlinks, and social promotion, all with full approval rights. It’s free PR, real thought leadership, and zero lift on your part. Learn how to join the Blueprint Collective here.

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